NFTs have recently become increasingly popular as a promising investment area. Today, money also has a digital origin. That is why it is worth taking a closer look at the NFT phenomenon and how to make money from it.
Features of NFT technology
NFT is a digital certificate that verifies the originality and ownership of a digital object that can take different forms:
- A digital copy of a painting;
- A game artifact;
- A digital copy of a song.
Such assets first appeared in 2017. The CryptoKitties and CryptoPunks projects were launched. NFT tokens are implemented on the blockchain. This guarantees the veracity of information about the owner.
Trends in NFTs
Since 2019, a large share of the NFT market has been occupied by gaming companies. This has made the segment more active. The number of digital collectors who not only buy NFTs but also create them while playing their favorite games is growing. The higher the level of the player, the more interesting and, consequently, more profitable the NFT will be. To help users, Chainers offers them a free NFT every day. Players have the opportunity to create their world to the smallest detail, realizing creative and social opportunities.
In 2021, artists entered the NFT market. This has become a good opportunity to monetize their creativity. For example, at Christie’s, the painting “Every Day: The First 5000 Days” was sold for $69 million.
NFTs backed by gold
Digital asset provider Lohko and tech firm Mattereum have launched NFTs backed by gold. Such assets are actually liquid, as real gold is stored in a vault in Singapore. Each of their NFTs looks like a gold bar with a number that corresponds to a real bar in the vault. Each such token comes with a guarantee that the NFT holder has the right to redeem the real gold.
Such assets are quoted on the Ethereum OpenSea platform. Each token corresponds to either 10 grams of gold or one ounce. There are also hundred-gram NFTs. The technology is promising. Therefore, in the future, we will see more tokenized gold in the digital world.
Opportunities to make money on NFTs
There are two ways to enter the NFT market: you can be an author or an investor. The first way requires artistic skills, as the image must have value. However, you don’t need to have a professional degree in design, art, or music.
The second option means that you will buy or receive NFTs for free, which will become popular and more expensive in the future. There are many ways to do this. For example, you can create your own NFT in the game, modifying it and adding new accessories. Also, many resources offer artifacts for free in exchange, for example, on registration on their website.
The work of an author and an investor can be combined. Then, undoubtedly, you have a better chance of success in the NFT market. However, in both cases, you need to understand what the audience likes. Both the author and the investor should be aware of trends and determine their development in the future.
The digital world opens up new prospects for investment. NFT provides an opportunity to get real financial benefits. This technology is becoming dominant in the world of digital money. Moreover, the more metaversions there are, the more the NFT market and the amount of tokenized gold will grow.